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Recipe to bring jobs, build economy

By Bradley Day

Posted:
09/29/2013 01:00:00 AM MDT

We cannot waste any more time: create jobs and opportunities for companies to locate here now! All of us are repulsed by our dismal statistics in almost every category -- economic, educational, income levels, and lately the worst environment for children.

The way out of this toxic caldron is to commit to doing what is necessary to attract companies that can offer our citizens solid job opportunities and wages. We have lost jobs since 2007 in key sectors, and are only adding lower-paying jobs that are depressing the standard of living of New Mexicans.

The recipe: Businesses look for a low tax burden and an efficient, well-run state government whose regulators are fair and predictable. How does New Mexico rate on these criteria?

Low Tax Rate: We are moving slowly toward a 5.9 percent corporate tax rate, but our border states either have no corporate tax or one lower than ours.

Solution: Get rid of corporate taxes and lower individual tax rates to 1 percent, and lower government spending to pay for it. The strategy of lowering tax rates to an attractive level and cutting government spending in concert is not new: President Calvin Coolidge did exactly that in 1922-28. He cut government spending by 40 percent annually, cut the income tax rate in half -- and paid off 40 percent of the National Debt in 6 1/2 years.

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And employment? The unemployed Americans count was reduced by 70 percent -- it was the lowest rate of unemployment achieved by any U.S. president. He met every Friday with his budget director except when traveling -- do we see any politicians on any level exerting that kind of effort and achieving that kind of result?

No -- but they are out there waiting to be elected if we insist on this strategy.

Efficient, Well-run Government: New Mexico has 2 million citizens and 22, 509 state employees. That's over 11 per 1,000 of population. Arizona has 7.7 state employees per 1,000 of population, and Texas has 5.8.

This is not acceptable and permits room for achieving an attractive, lower tax rate.

Additionally, these employees average over $61,000 of compensation and benefits. Private-sector employees average slightly over $42,000 -- can we privatize many government services and achieve better efficiency? Of course we can. Every department, every employee should be scrutinized for achieving this requirement. Every Friday should be a mandatory edict for our elected officials to search for economy in spending while maintaining good service.

Economic Development Fund: $200 million would be a minimum size to compete with our border states. If you watch the business channels, you see what we're up against -- it takes money to attract companies that offer quality jobs. Let's quit fooling around -- our weather is not going to do it.

These are three strategies that are a minimum to get on track to making solid job opportunities available through recruitment of successful companies. Only then will we see our disgusting rankings improve. Labor supply and demand is what will drive up wages -- as long as we continue to ignore the action necessary to recruit companies and jobs to New Mexico -- or try to pass laws to mandate what wages should be -- the worse our situation will be. So many of our graduates from our five universities have to leave the state to find a decent job. That means that you, the taxpayer, are spending millions of dollars to train employees for companies in other states! Let's quit talking and take action. Ask your elected officials what their plan is to recruit companies and jobs to New Mexico -- then you will know how to vote! Start with your city officials, legislators, governor and congressional delegation!

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